Financial development in Shandong Province impacts TFP growth significantly.
The study looked at how financial development affects productivity in Shandong Province, China. They found that factors like the size of the financial sector, efficiency of financial institutions, government intervention, and foreign investment impact productivity growth. The efficiency of financial institutions has a critical threshold effect on productivity growth, with financial scale and government intervention being key factors influencing productivity growth. These findings suggest that improving financial efficiency and managing financial scale and government intervention can boost productivity in Shandong Province.